First National Bank of Lawrence v. Methodist Home for the Aged

309 P.2d 389 (1957)

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First National Bank of Lawrence v. Methodist Home for the Aged

Kansas Supreme Court
309 P.2d 389 (1957)

SC
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Facts

Bertha Ellsworth moved into the Methodist Home for the Aged (Home) (defendant). The day she moved in, she signed a form contract that the Home prepared and presented to all of its new residents. As part of the contract, Ellsworth agreed to pay the Home $10,779.60 in furtherance of its charitable work and that the Home admitted Ellsworth into the Home “during the period of her natural life.” In addition, however, the contract provided for a two month trial period during which Ellsworth could see if she liked living in the Home before committing to living there long term. The contract provided that if Ellsworth found it “advisable to discontinue her stay in the Home, then her gift, with the exception of $80.00 per month shall be refunded.” Ellsworth paid the $10,779.60, but one month after she moved in, she died. The First National Bank of Lawrence (Bank) (plaintiff), administrator of Ellsworth’s estate, brought suit against the Home to recoup Ellsworth’s gift to the Home upon her moving in. The trial court found in favor of the Bank. The Home appealed.

Rule of Law

Issue

Holding and Reasoning (Parker, C.J.)

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